The Consortium is a powerful means of achieving results

What is a consortium? The consortium is a temporary association of economically independent enterprises with the aim of coordinating various types of entrepreneurial activities. As a rule, such an alliance is created to jointly receive a large order and its subsequent execution. Other tasks for the solution of which a consortium is created can be the implementation of a large project or program or the placement of a loan for a large amount. The consortium can include any enterprise regardless of the form of ownership. Within this union, roles are allocated so that each firm operates in the area where it has reached the highest technical level with minimal production costs.

Each firm that forms part of such a union forms its offer for a share of supplies, from which the aggregate supply is then formed. The consortium is a voluntary matter, and you can withdraw from it at any time. At the same time, there is no restriction on the size of the enterprise wishing to join the alliance.

The consortium can be open and closed. Closed work of participants is coordinated by the leader receiving a certain amount of deductions for this and acting within the limits of strictly defined powers. It is with the leader that the customer concludes the contract. The responsibility of the open consortium to customers is distributed among the participants on a solidary basis. In a closed consortium, the customer agrees separately with each participant.

In the legislation of Russia, as in many other foreign countries, there are no legal documents regulating the creation of a consortium. In 1973 and 1979 The Economic Commission of Europe, a member of the UN, has developed recommendations for drafting a treaty on the creation of a consortium.

From the point of view of the organization, there are two main types of consortium. The first is based on the contract of simple partnership, and the second type, a simple consortium - on the obligations of each participant with the customer and with each other.

We can distinguish the following features of such a union:

• The organization of the consortium is formalized by agreement;
• The creation of such an association can occur with the formation and without the formation of an AO, an economic company or another legal entity;
• As a rule, there is no organizational structure within the consortium, with the exception of the board of directors or a similar small apparatus;
• Economic and legal independence of the participants who wished to enter the consortium is fully preserved. This, of course, does not concern the type of activity that is associated with the purpose of such an association;
• Quite often the consortium is a non-profit organization;
• In the framework of such a union efforts are combined to implement a specific task, a project or placement of a loan or securities;
• One and the same company may be part of several consortia;
• In such an association, not only the activities are coordinated, but the overall development strategy and investment policy are implemented .

The main types of consortia being created are:

• Banking consortium. This is a union consisting of a group of large banks.
• Consortium-guarantor, guaranteeing the return of the loan received.
• Guarantee consortium. It is an alliance that distributes the risk taken by each participant and ensures its reimbursement.
• Subscription consortium. He ensures the sale of a loan or the placement of new shares.
• Financial consortium. This is the merger of several banks to carry out major financial transactions.
• Export consortium, facilitating the export operations of each of the participants.

Among the subscription or financial consortiums, one can also find those who act on an ongoing basis. If the union is successful, it may eventually lead to the formation of a corporation.